The first vertical risk assessment on terrorist financing has just been finalized by Luxembourg.

The starting point for the TF (terrorist financing) risk assessment is terrorism: its different actors, their financing needs and the geographical space of their actions. The methodology of this vertical risk assessment allowed to identify (sub)sectors vulnerable to TF and then to assess specific mitigating factors to reduce the scope of these vulnerabilities. For example, not-for-profit organizations (NPOs) are vulnerable to FT given the location of their operations. As for retail and merchant banks, and money or value transfer services, their products and services make them vulnerable to lone actors, small terrorist cells, or foreign terrorist fighters who might misuse them to channel funds.